Explain critical appraisal of chamberlins theory, International Economics

Assignment Help:

Q. Explain Critical Appraisal of Chamberlins theory?

a. Chamberlin assumed that monopolist competitors act independently and their price manicuring goes unnoticed by the rival firms. This assumption was questioned

b. His model implicitly assumes that monopolistically competitive firms do not learn from their part experience. They continued to commit the mistakes of reducing their prices even if successive price reductions lead to decrease in their profits.

c. His concept of industry as a "Product group" is ambiguous

d. His heroic assumption of identical cost and revenue curies are questionable e. So far as empirical validity is Chamberlin concept of monopolistic competition is concerned, it is difficult to find any example in the real world to which his model of monopolistic competition is relevant.


Related Discussions:- Explain critical appraisal of chamberlins theory

Explain the advantage a and disadvantage of globalization, Q. Explain the a...

Q. Explain the advantage a and disadvantage of globalization? Advantages - 1. Economic growth 2. Lower cost 3. Improved availability of goods and services 4. Glob

International trade, What does the factor proportions theory posits

What does the factor proportions theory posits

Customs union under conditions of oligopoly, using diagrams, corden''s theo...

using diagrams, corden''s theory of customs union under conditions of oligopoly and within the existence of external economics of scale.

Explain demand for money, Q. Explain why one can write the demand for money...

Q. Explain why one can write the demand for money as follows: Md = P L (R, Y) Answer: The collective money demand is proportional to the price level. Imagine that every prices

Economic problems, The Republic of Ireland has had colossal economic proble...

The Republic of Ireland has had colossal economic problems for many years. On the other hand, in the last two decade, the nation has experienced a thriving economy and has becom

Explain how brazil was able to reduce the rate of inflation, Q. Expla...

Q. Explain how Brazil was able to reduce the rate of inflation from 2,669 percent in 1994 to less than 10 percent in 1997? Answer: By initiating a new currency and init

Study the effects of a change in market, Q. Use a figure to study the effec...

Q. Use a figure to study the effects of a change in market belief with regard to the fixed exchange rate, in particular assume market participants expect the government to devaluat

What if the taste bias favored the imported good, Q. One of the usually us...

Q. One of the usually used assumptions in deriving the Heckscher-Ohlin model is that tastes are homothetic, or that if the per capita incomes were the similar in two countries, th

Peripheral Capitalism, I am writing a paper on dependancy theory in Ghana a...

I am writing a paper on dependancy theory in Ghana and I am having trouble understanding the basics of peripheral capitalism.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd